News

Armstrong Teasdale Secures Judgment in Trade Secrets, Unfair Competition Case

September 12, 2022 Firm News

Armstrong Teasdale has secured judgment for client Red Wolf Energy Trading, LLC in a case involving claims of misappropriation of trade secrets and unfair trade practices against Gregory Moeller and Bia Capital Management, LLC. In the Order defaulting Defendants Bia and Greg Moeller and awarding expenses (including attorneys’ fees and costs) as a sanction for repeated discovery violations, the U.S. District Court for the District of Massachusetts, the Hon. Mark L. Wolf stated that the case involved “more meritorious motions to compel and for sanctions against defendants for failure to produce documents than any other case in which this court has presided in more than 37 years.” 

As the Court further stated: “The law is not a game, and, as the court told defendants, civil discovery is not a game of hide and seek. The decision in this case should encourage litigants to understand that it is risky business to recklessly or deliberately fail to produce documents, and perilous to disobey court orders….” 

Red Wolf is an energy trading firm that trades virtual electricity products in federally regulated energy markets. Red Wolf alleged the defendants schemed to enter the market as a competitor using Red Wolf’s software, trade secrets and other assets, in violation of the federal Defend Trade Secrets Act and Massachusetts statute prohibiting unfair and deceptive trade practices.

In the process of discovery, the defendants were required to produce all documents by Dec. 31, 2019, but did not do so. On April 1, 2021, and again on Aug. 31, 2021, the court issued orders directing the defendants to produce the required documents. Based on the production of documents that should have been received in 2019, Red Wolf filed a motion for sanctions which was granted, ordering the defendants to pay Red Wolf’s reasonable attorney fees concerning the motion.

After receiving still more documents from defendants in April 2022 and determining that it still had not received all the relevant discovery, Red Wolf filed a second motion for sanction in June 2022 based on the defendants’ repeated failure to produce the required communications. Despite repeated court orders and sanctions, the defendants failed to produce critical digital evidence, and in August 2022, the court ordered defendants to provide the plaintiff with a copy of the 2019 Slack Archive. Forensic analysis of missing Slack messages by UnitedLex revealed significant production deficiencies along with the proverbial “smoking gun”: a Slack exchange in which the defendants discussed how to create an algorithm derived from the plaintiff’s intellectual property.

Noting that “entering a default judgment for violation of discovery orders is a drastic sanction, the Court nonetheless granted the motion and entered default judgment in favor of Red Wolf among other relief “to do justice in this case and to deter others from engaging in similar extreme misconduct….” The findings from UnitedLex were a significant deciding factor in the judgment.

Red Wolf was represented by Armstrong Teasdale Partner John Sten and Associate Allison McFarland, with support from Partners Jason Moreau and Justin Engel. Derek Duarte, Colleen Freeman and their team of data experts at UnitedLex provided the discovery consulting, forensic analysis, and expert testimony.

Contact Us
  • Worldwide
  • Boston, MA
  • Chicago, IL
  • Denver, CO
  • Dublin, Ireland
  • Edwardsville, IL
  • Jefferson City, MO
  • Kansas City, MO
  • Las Vegas, NV
  • London, England
  • Miami, FL
  • New York, NY
  • Orange County, CA
  • Philadelphia, PA
  • Princeton, NJ
  • Salt Lake City, UT
  • St. Louis, MO
  • Washington, D.C.
  • Wilmington, DE
Worldwide
abstract image of world map
Boston, MA
800 Boylston St.
30th Floor
Boston, MA 02199
Google Maps
Boston, Massachusetts
Chicago, IL
100 North Riverside Plaza
Suite 1500
Chicago, IL 60606-1520
Google Maps
Chicago, Illinois
Denver, CO
4643 S. Ulster St.
Suite 800
Denver, CO 80237
Google Maps
Denver, Colorado
Dublin, Ireland
Fitzwilliam Hall, Fitzwilliam Place
Dublin 2, Ireland
Google Maps
Edwardsville, IL
115 N. Second St.
Edwardsville, IL 62025
Google Maps
Edwardsville, Illinois
Jefferson City, MO
101 E. High St.
First Floor
Jefferson City, MO 65101
Google Maps
Jefferson City, Missouri
Kansas City, MO
2345 Grand Blvd.
Suite 1500
Kansas City, MO 64108
Google Maps
Kansas City, Missouri
Las Vegas, NV
7160 Rafael Rivera Way
Suite 320
Las Vegas, NV 89113
Google Maps
Las Vegas, Nevada
London, England
Royal College of Surgeons of England
38-43 Lincoln’s Inn Fields
London, WC2A 3PE
Google Maps
Miami, FL
355 Alhambra Circle
Suite 1200
Coral Gables, FL 33134
Google Maps
Photo of Miami, Florida
New York, NY
7 Times Square, 44th Floor
New York, NY 10036
Google Maps
New York City skyline
Orange County, CA
19800 MacArthur Boulevard
Suite 300
Irvine, CA 92612
Google Maps
Philadelphia, PA
2005 Market Street
29th Floor, One Commerce Square
Philadelphia, PA 19103
Google Maps
Philadelphia, Pennsylvania
Princeton, NJ
100 Overlook Center
Second Floor
Princeton, NJ 08540
Google Maps
Princeton, New Jersey
Salt Lake City, UT
222 South Main St.
Suite 1830
Salt Lake City, UT 84101
Google Maps
Salt Lake City, Utah
St. Louis, MO
7700 Forsyth Blvd.
Suite 1800
St. Louis, MO 63105
Google Maps
St. Louis, Missouri
Washington, D.C.
1717 Pennsylvania Avenue NW
Suite 400
Washington, DC 20006
Google Maps
Photo of Washington, D.C. with the Capitol in the foreground and Washington Monument in the background.
Wilmington, DE
1007 North Market Street
Wilmington, DE 19801
Google Maps
Wilmington, Delaware